TSMC’s possible weak spot? Chances for Japan’s Rapidus?

Backed by Japan’s push for semiconductor revival, Rapidus is positioning itself as a challenger to TSMC’s reign — but, can it deliver?

According to Commercial Times, citing a recent interview by Shupure News with industry commentator Jyo Poyo, who frequently publishes in outlets such as Tokyo Keizai, TSMC may have one potential weak spot — a factor that could give Japan’s Rapidus a rare chance to strike back.

Possible crack in TSMC’s empire?
As the report notes, Jyo Poyo points out that cracks are beginning to appear within TSMC itself. The newer generation of executives, those who joined after the company became a global giant, no longer embody the old “we’ll meet any request” ethos. Bureaucratic tendencies are starting to take hold, and that gradual shift in culture, Jyo Poyo adds, could open the door for Rapidus.

Still, Jyo Poyo notes that for Rapidus, competing directly with TSMC or Samsung would be a near-impossible task for now. Instead, the company’s best chance lies in targeting niche markets and building momentum through smaller, incremental wins. Jyo Poyo adds that Rapidus’s long-term success will ultimately depend on domestic demand, emphasizing that Japan’s companies must act in unison if they hope to prevail.

Secret behind TSMC’s rise: Selective automation
As for how TSMC overtook its Japanese and Korean rivals, Jyo Poyo attributes its success to a “philosophy of selective automation,” as the report notes. Rather than automating every process, TSMC focused on areas where automation made economic sense, while Japan pursued full automation — a choice that sometimes proved more costly. This pragmatic approach gave TSMC a decisive cost advantage, and as technology advanced and wages rose, TSMC gradually expanded automation to become the world’s most highly automated chipmaker.

Meanwhile, when asked about China’s rise in semiconductors, Jyo Poyo notes that U.S. restrictions can only slow, rather than stop, the country’s progress. In fact, China’s development has accelerated since these measures took effect. However, having the equipment alone is not enough. The ability to optimize yield, Jyo Poyo says, remains TSMC’s “secret sauce,” a level of know-how so vital that protecting it has become a matter of survival.

Source: TrendForce, Taiwan.